TikTok to pay $400m settlement in US children’s privacy case

TikTok and its parent company, ByteDance, have agreed to a $400 million settlement with the US Department of Justice to resolve claims of violating federal children's privacy laws. The agreement includes an immediate payment of $300 million, with an additional $100 million due once a previous consent decree against Musical.ly, TikTok's predecessor, is vacated.

The Justice Department highlighted the settlement as one of the largest recoveries ever achieved in a case involving the Children's Online Privacy Protection Act (COPPA). This federal law prohibits websites from collecting personal information from children under 13 without obtaining parental permission.

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Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok’s predecessor, Musical.ly.

The lawsuit, filed in 2024 by the Justice Department and the Federal Trade Commission, alleged that TikTok endangered millions of children by collecting and using their personal data without parental consent. The suit claimed that even accounts set up in a "Kids Mode," designed for users under 13, gathered personal information like email addresses.

This case stems from a 2019 COPPA lawsuit against Musical.ly, which ByteDance acquired in 2017 and subsequently merged into TikTok. TikTok has not yet responded to a request for comment.

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one of the largest recoveries ever obtained